Businesses are going digital and using the internet more than ever. The Internet is being used in all industries for daily business operations. However, with the large-scale proliferation of the internet, businesses have become the target of hackers too. Data breaches can be very costly for the business. They can hurt your business in both monetary and non-monetary terms. Some of the key reasons why cybersecurity is important are discussed below:
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Your Reputation is on Stake
Modern-day business depends largely on reputation. Customers will pay a premium to buy products and services from a reputed brand. Hackers can breach into your network and steal confidential business data. If you are unable to protect the sensitive data of your clients, it does not bode well for you. Your customers will lose confidence in your business and may move over to the competitors. Data breaches can erode your company’s brand value and goodwill in the market. It can be difficult for most businesses to restore their brand name and goodwill after it erodes significantly.
Data Breaches are Costly
Why cybersecurity is important can be understood from the financial implications of a data breach. Data breaches can cost your business nearly $3.86 million on average. This is only the cost of technical investigations and regulatory filings. If the client’s sensitive data is breached, then you will have to pay for lawsuits and compensations. This can be very costly for your business and make it financially unstable. Studies have revealed that 80% of the consumers are likely to defect from a business in case of a data breach. This will impact your revenue and profitability considerably.
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Hackers Have Become Sophisticated
Over time, hackers have become highly sophisticated. They have developed new ways to breach into networks of businesses for data theft. There are numerous examples of well-coordinated cyber attacks on companies. Hackers can now plant malware with dynamic code into your network. This means the malware will continuously keep changing its code and evolving. This makes it very difficult to counter such malware. With the growing expertise of hackers, every business should assume that they may get hacked at some point. This makes it necessary to have robust cybersecurity measures in place and highlights the importance of cybersecurity. It will help to keep your business safe and secure from such malicious hackers.
IoT has revolutionized our lives. It has made it easier to seamlessly integrate the internet in our daily lives. However, it can also be targeted by hackers for data breaches. IoT devices have become more common in offices. They are connected to the internet and acts as easy entry points for hackers to break into your network. Cisco estimates that by 2021, nearly 27.1 billion devices will be connected to the internet. This means the problem will only increase manifold in the near future. You should regularly check these IoT devices for any potential network breaches to remain secure.
Regulatory Fines and Sanctions
Governments have become very serious about preventing data breaches. They have passed laws and regulations that make it mandatory to have strict data protection protocols. GDPR and other similar regulations emphasize the importance of cybersecurity. Businesses need to take their cybersecurity more seriously or face fines or even sanctions in some countries. GDPR compels businesses to take intensive care of their client’s data. They are required by law to implement measures to protect the client’s data. It also requires companies to regularly review such data controls and detect and report breaches. In most cases, the cost of implementing cybersecurity measures is much less than the fines. Doing so also does not erode your brand and goodwill.